World News
BP VLSFO Available from H2
BP says its recently announced IMO2020 compliant VLSFO products will be available in the second half of 2019, which is when it is anticipated that shippers will begin to demand such fuels.
Responding to a series of questions from Ship & Bunker following on from news last week it would retail VLSFO in several ports, the energy major also confirmed that it would make the products available on the spot market and via contract.
General availability of in-depth specifications of the VLSFOs coming onto the market has been limited, and BP said simply that buyers should continue to use the current ISO 8217 standard with an adjusted sulfur limit of 0.5% as a guide when purchasing fuels in 2020 and beyond.
BP has also given no assurance on the global cross compatibility of its products, and that compatibility should always be tested to confirm suitability before commingling.
"Fuels handlers are advised to segregate bunker stems on board in line with standard operational procedures," a spokesperson said in the emailed response.
Its current outlook on pricing - another key uncertainly for IMO2020 - is equally broad, confirming on that its expectations are inline with the rest of the industry that VLSFO will sell at a discount to MGO, and at a premium to HSFO.
The global sulfur cap lowers to 0.50% from January 1, 2020.
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| Singapore | 553.50 | 0.00 | 673.00 | 0.00 |
| Rotterdam | 514.50 | 0.00 | 651.00 | 0.00 |
| Houston | 545.00 | 0.00 | 671.00 | 0.00 |
| Fujairah | 543.00 | 0.00 | 747.00 | 0.00 |
| Global 20 Ports Average | 574.00 | 0.00 | 748.00 | 0.00 |
| Global 4 Ports Average | 539.00 | 0.00 | 685.50 | 0.00 |
| Global Average Bunker Price | 627.00 | 0.50 | 799.50 | 1.00 |
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